Industrial warehouses

One of the most common queries, both for those who want to rent or buy an industrial building and for those who have a building to offer, is what criteria to apply when setting the price, or how to know if the price asked for a building is within the market parameters.

If we go into the pricing criteria, there are two ways of doing this: relative valuation, and discounted CASH FLOWS, and this can only be done by the owner of the building, who has the necessary information).

The relative valuation to fix the price of an industrial building may be less precise, but it is the most common.

In this case, first of all, a comparison is made with warehouses in the same area and similar conditions, to see at what prices they are being offered. It is very important to bear in mind that the market price is the price paid, not the asking price. That is to say, if we only look at the offers in newspapers or websites, we will see the price set by the owner, not the price that has finally been paid, or if they have really been able to rent or sell it at that price.

The best way to obtain reliable data is to talk to reliable professionals who can tell us at what prices similar transactions have been closed in the area.

As a guideline, the factors that influence the relative valuation are:

• The area where the warehouse is located: Both the location and the geographical area are taken into account. For example, a warehouse in Barcelona city or in the metropolitan area is not the same as a warehouse in the first crown (which includes the two previous ones) or in the second or third crowns.
• The location within the city: whether it is in a central area (which may have limitations on activity or licences), in an industrial area with sufficient services and infrastructure, close to the main transport connections..
• The size and condition of the warehouse: Floor plan, height, state of the installations and supplies…
• The market trend: Currently the industrial warehouse market has more demand than supply, especially in certain areas, which tends to vary the reference prices.

In addition, less objective criteria also have an influence, such as the owner’s perception of the state of the market or the hurry to rent or sell. In the first case, we may find prices well or slightly above market prices in the area; in the second, we may find an interesting offer that fits what we are looking for at a very appropriate price.

In addition, less objective criteria also have an influence, such as the owner’s perception of the state of the market or the hurry to rent or sell. In the first case, we may find prices well or slightly above market prices in the area; in the second, we may find an interesting offer that fits what we are looking for at a very appropriate price.